Hawane Nature Reserve was initially established in 1978 to protect an area of marsh along the Mbuluzi river, including some of the natural habitat of the Swaziland endemic, Kniphofia umbrina, an extremely rare "red hot poker". The nature reserve was extended in order to protect Mbabane's water supply through the protection of Hawane Dam and its surrounds, following the construction of the dam in 1988.

The area currently includes the dam wall and surrounds, as well as marshy areas upstream of the dam.